ALBANY, N.Y. (AP) – Standard Chartered Bank has agreed to pay $327 million to settle federal and New York charges it laundered money on behalf of four countries that were subject to U.S. economic sanctions from 2001 through 2007.
Federal authorities said the settlement announced Monday was part of a deferred prosecution agreement with the Justice Department and Manhattan district attorney. The deal covers currency transactions made at the British bank’s New York branch for Iranian, Sudanese, Libyan and Burmese entities that were concealed from regulators. The London-based bank also has settled with the Treasury Department’s Office of Foreign Assets Control and the Federal Reserve.
“For years, Standard Chartered Bank deliberately violated U.S. laws governing transactions involving Sudan, Iran and other countries subject to U.S. sanctions,” said Assistant U.S. Attorney General Lanny Breuer. “The United States expects a minimum standard of behavior from all financial institutions that enjoy the benefits of the U.S. financial system. Standard Chartered’s conduct was flagrant and unacceptable.”
Standard Chartered said the investigation found about $133 million processed for the four countries through its New York branch, which handled $139 trillion overall during those years. The bank said it has upgraded compliance procedures and that no further action will be taken by authorities if the bank meets settlement conditions, which include a $327 million cash payment this year.
“The settlements are the product of an extensive internal investigation that led the bank voluntarily to report its findings concerning past sanctions compliance to these U.S. authorities, and nearly three years of intensive cooperation with regulators and prosecutors,” Standard Chartered said. “In the more than five years since the events giving rise to today’s settlements, the bank has completed a comprehensive review and upgrade of its compliance systems and procedures.”
U.S. authorities allege the bank illegally told a customer in a sanctioned country to mask transactions by substituting the London bank’s unique code in wire payment messages and deleting data that would have revealed the involvement of sanctioned entities and countries.
The conduct occurred in Standard Chartered business units around the world, primarily in London and Dubai, “with the knowledge and approval of senior corporate managers and the legal and compliance departments,” the Justice Department said.
In August, New York’s Department of Financial Services announced a $340 million settlement with Standard Chartered to resolve its investigation into whether the British bank schemed with the Iranian government to launder money from 2001 to 2007 through its New York branch.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
- The Pac-12 football season nears kickoff
- Tips to get ready for a pain-free golf season
- Protect your family with these 7 home security features
- How to train like an Olympic swimmer
- 2016 Olympics: A guide to must-see TV events
- The bride's guide to feeling your best on your wedding day
- Deciding when you need knee surgery
- Celebrating Fourth of July is much cooler in these AZ towns
- Top ten road trip bathrooms in America
- Six things causing a pain in your neck
- 5 things to make your summer move easier
- Three elements of a strong timeshare exit guarantee
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.
- 6 of the biggest skin cancer myths
- Affordable small home makeover ideas
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Overlooked water tips to save you money
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food